Nearly 3,000 people employed by a Coventry company were told on Christmas Day they were losing their jobs.

Administrators were called in to parcel delivery group City Link, based in Siskin Parkway West, Baginton, two days ago after a buyer couldn’t be found for the company.

The company, which has 2,727 employees at more than 50 UK depots, has incurred “substantial losses” over several years.

It is owned by investment capital firm Better Capital.

Hunter Kelly, joint administrator to City Link, said: "These losses reflect a combination of intense competition in the sector, changing customer and parcel recipient preferences, and difficulties for the company in reducing its cost base.

"The strain of these losses became too great and all but used up Better Capital’s £40 million investment, which was made in 2013 and intended to help to turn around the company.

"Despite the best efforts to save City Link Limited, including marketing the company for sale, it could not continue to operate as a going concern and administrators were appointed."

The National Union of Rail, Maritime and Transport Workers said they found out that City Link was in administration on Christmas Eve, but the company wouldn’t confirm it until the next day.

Mick Cash, the RMT General Secretary, said: "The delayed timing of the announcement that City Link was in administration to tea time on Christmas Day stinks to high heaven.

"Not only was it the most brutal and callous way to treat nearly 3,000 staff but RMT believes there may have been more cynical motives behind it which we want the Government to investigate.

"The disgraceful timing of the City Link announcement at the start of the festive season must not be allowed to delay and hamper efforts to rescue the jobs.

"That is why RMT is demanding urgent meetings with both the administrators and Vince Cable, we will tolerate no dragging of heels."

All operations at City Link depots have been suspended until Monday, when customers will be able to collect their parcels.

Founded in 1969, City Link said on its website that it had annual revenues of approximately £300 million, a fleet of 1,700 vehicles and delivered 60 million items worldwide each year.